High Liner Foods sales of $319.2 million during the first quarter of 2018 amounted to a $43.5 million increase over the 13-week period ending on March 31, 2017, according to financial results posted by the Lunenburg, Nova Scotia, Canada-headquartered frozen seafood company. Gross profit advanced by $5.1 million to $60.6 million, though net income slipped by $400,000 to $10.3 million.
In volume terms, Q1 sales increased by 4.9 million pounds to 88.1 million pounds. This was attributed to the acquisition of Culver City, California-headquartered frozen shrimp supplier Rubicon Resources in May of 2017, which contributed 7.9 million pounds to the total. Excluding Rubicon figures, sales volume for the first quarter of 2018 decreased by 3.0 million pounds, reflecting lower sales volume in the United States retail and foodservice businesses.
Setting aside the impact of a stronger Canadian dollar on the translation of US dollar sales from the company’s Canadian dollar-denominated operations relative to the conversion impact last year (approximately $2.9 million) and the impact of sales from Rubicon ($42.1 million), sales decreased by $1.5 million mainly due to product mix and the lower sales volume, partially offset by price increases related to raw material cost increases.
“Excluding Rubicon, adjusted EBITDA was in line with the first quarter of 2017, and improving the efficiency of our manufacturing facilities remains a key focus in 2018 to deliver improved performance,” said Chairman Henry Demone.
He added that High Liner management aims to enhance future results by “improving pricing methodologies, lowering fixed cost, further increasing the effectiveness of our supply chain and product innovation, and simplifying our business. We will work to mitigate the impact of higher raw material costs on certain key species, and higher supply chain expenses.”
Meanwhile, the chairman welcomed Rod Hepponstall aboard as chief executive officer of High Liner Foods on May 1. He new ceo previously served as senior vice president and general manager for the retail and foodservice business units of Lamb Weston in the United States.
